\u3000\u30 Chongqing Baiya Sanitary Products Co.Ltd(003006) 73 Petpal Pet Nutrition Technology Co.Ltd(300673) )
Event:
Petpal Pet Nutrition Technology Co.Ltd(300673) released the annual report of 2021 & the first quarterly report of 2022: in 2021, the total operating revenue of the company was 1.271 billion yuan, down 5.15% year-on-year, and the net profit attributable to the parent company was Giti Tire Corporation(600182) million yuan, down 47.73% year-on-year; In 2022, the total operating revenue of Q1 was 343 million yuan, an increase of 7.03% year-on-year, and the net profit attributable to the parent company was 285491 million yuan, an increase of 22.12% year-on-year.
Key investment points:
The impact of overseas shutdown was basically eliminated, and the performance improved significantly in the first quarter.
① in 2021, the total operating revenue of the company was 1.271 billion yuan (year-on-year - 5.15%), and the net profit attributable to the parent company was Giti Tire Corporation(600182) million yuan (year-on-year - 47.73%). Affected by the epidemic, Vietnamese factories shut down from August to October 2021, and some orders were transferred to Chinese factories. The cost of Chinese factories is higher than that of Vietnamese factories, and the orders exported by Chinese factories to the U.S. market need to bear some tariffs, which affects the income and profitability of these orders, and the expenses of manufacturing expenses, management expenses and other costs and expenses of Vietnamese factories in the stage of capacity recovery have increased; During the reporting period, the audited exchange loss was 225719 million yuan, accounting for 37.61% of the current net profit; At the same time, the "40000 tons / year high-quality pet dry food project" implemented by North Island town and New Zealand natural pure is in the construction period, and the annual losses of the two companies totaled 222859 million yuan, which also had a great impact on the performance of the company in the reporting period.
② in 2022, the total operating revenue of Q1 company was 343 million yuan (year-on-year + 7.03%), and the net profit attributable to the parent company was 285491 million yuan (year-on-year + 22.12%). The company's performance recovered significantly in the first quarter, and the impact of shutdown in Vietnam was basically eliminated. With the continuous climbing of the production capacity of Cambodia project in 2022, the 40000 ton project in New Zealand is expected to release 20% of the production capacity, the new plant gradually entered a mature and stable profit stage, and the annual performance will be further improved.
Actively develop Wuxi Online Offline Communication Information Technology Co.Ltd(300959) channels and broaden the construction of independent brands. In the Chinese market, the company speeds up the listing of its own brand new products and gives preference to key brands in marketing resources. At present, the company's brand matrix is perfect. Haoshijia, a brand of all kinds of pet food (98K staple food cans, frozen dry food at full price of ice banquet and other key products), tootheng, a professional pet chewing food brand, jueyan, a high-end nutritious meat snack brand, ITI, a new Zealand pet food brand, smartbalance, a high-end staple food brand, and Beijia, a mass consumer brand, cut into different market segments through different brands to meet the diversified needs of end customers. In terms of channel construction, the company will explore the Chinese market through the self-operation and distribution of online tmall and JD flagship stores, the direct sales and distribution of offline key cities, as well as the exclusive supply of pet hospitals and pet merchants, which is expected to achieve the sustained and rapid growth of China's performance.
In terms of profit forecast and investment rating, considering that the impact of shutdown in Vietnam on the company is basically eliminated, and the company's performance is expected to continue to develop with the subsequent release of production capacity in New Zealand and Cambodia, we believe that the operating revenue of the company from 2022 to 2024 is RMB 1.61920632443 billion, corresponding to 31.97/19.85/14.29 times of PE respectively, maintaining the "buy" rating.
The risk indicates the risk of slowdown in the growth of the industry; Risk of exchange rate fluctuation; The risk that the new plant is not put into operation as expected; The risk of intensified export trade disputes; Covid-19 risk of exceeding the expected severity and duration of the epidemic; The risk that the company's performance does not meet expectations, etc.
